Balancing Optimism and Caution: Jonna Kim’s Hold Rating for Olaplex Holdings

Olaplex Holdings (OLPX – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Jonna Kim from TD Cowen maintained a Hold rating on the stock and has a $1.80 price target.

Jonna Kim’s rating is based on a combination of factors that reflect both optimism and caution regarding Olaplex Holdings. The company has shown promising results in its recent efforts to rebrand and market itself, particularly through initiatives that engage stylists, who are crucial to the brand’s success. Despite better-than-expected results in the first quarter of 2025, management has maintained a cautious outlook due to ongoing macroeconomic uncertainties, which Jonna Kim considers a prudent approach.
Additionally, Olaplex’s strategic vision, known as the bonds and beyond strategy, has been well-received by retail partners, contributing to improved specialty retail sales. Inventory levels remain healthy, and as sell-through trends improve, the gap between sell-through and sell-in is expected to close. The company is also committed to innovation, with plans to launch new products annually. However, while progress is evident, there is acknowledgment that more work is needed to fully revive the brand, leading to the Hold rating.

In another report released today, Barclays also maintained a Hold rating on the stock with a $1.20 price target.

Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OLPX in relation to earlier this year.